Disputes (chargebacks) occur when a client contacts their bank claiming they didn't authorize a payment or didn't receive the service/product.
The Process:
1. Client files dispute with their bank or payment provider
2. You receive notification from Stripe/PayPal
3. Funds are temporarily held during investigation
4. You have 7-10 days to provide evidence (invoices, receipts, communication records, delivery confirmation)
5. The processor reviews evidence and makes a decision
6. If you win: Funds are released back to you
7. If you lose: Funds go back to the client, and you may be charged a dispute fee ($15-$20)
How to Protect Yourself:
Keep detailed records of all work and communication
Require signed contracts or work orders
Send invoices with clear descriptions of services/products
Save email confirmations and delivery receipts
Respond to disputes quickly with comprehensive evidence
Maintain professional communication with clients
Prevention: Clear communication and documentation prevent most disputes before they start.